• Car Dealer Plus
No Result
View All Result
  • Latest
  • Used Cars
  • Live
  • Forum
  • Power 2020
  • Used Car Awards
  • CDX
  • Knowledge
  • Suppliers Guide
  • About Us
  • Latest Issue
  • Top 100
  • CD Plus
  • Latest
  • Used Cars
  • Live
  • Forum
  • Power 2020
  • Used Car Awards
  • CDX
  • Knowledge
  • Suppliers Guide
  • About Us
  • Latest Issue
  • Top 100
  • CD Plus
No Result
View All Result

Updated: Talks between SsangYong GB and Mitsubishi officially called off as firms ‘miles apart’ on price

James Baggott by James Baggott
December 17, 2020
0
Home News

Talks that would have seen SsangYong GB take over the UK Mitsubishi operation have failed.

A senior source close to the discussions told Car Dealer earlier today that there were ‘substantial’ differences in the price both parties wanted for the Colt Car Company.

The failure of the takeover is likely to see Mitsubishi in the UK become a parts only business from September next year – with the sales of cars believed to be halted at the same time.

In official statements, both companies confirmed talks had taken place, but were now officially over.

  • Ad-free Car Dealer website, £5 per month

The senior SsangYong source told Car Dealer this morning: ‘The talks have broken down – it’s not happening. We couldn’t get close. We made an offer, they made a counter offer and it was clear we were worlds apart.’

It’s understood that the talks failed because the Japanese company had ‘unrealistic expectations’ on the value of the remainder of the Mitsubishi business in the UK.

SsangYong GB was interested in the Colt Car Company because it would have allowed it to rapidly scale up its dealer network in the UK.

‘We have already taken on 10 Mitsubishi dealers and are in talks with 20 more,’ said our SsangYong source.

‘The Mitsubishi network is falling apart, some have gone to Suzuki, others to MG and Hyundai. We’re confident we’ll get a lot of them across anyway.’

In an official statement, issued this afternoon, SsangYong admitted they were disappointed the talks led to nothing, but the firm was continuing to drive forward towards a ‘robust future’.

Car Dealer broke the news last month that Bassadone Automotive Group – the parent company of SsangYong, based in Gibraltar – was in talks with Mitsubishi Corporation about taking over the distribution rights for the brand in the UK.

Chairman of SsangYong GB, Jim Tyrell – a former boss of Mitsubishi in the UK – was said to be the driving force behind the deal.

He was working with Laird, former boss of SsangYong GB and now boss of parent company Bassadone to get the deal over the line.

Laird said: ‘The news is clearly disappointing, however we wish MC and the team at CCC all the best for the future.’

Mitsubishi announced in the summer that it was withdrawing support for European models, effectively killing off the brand in the UK.

  • Dealers reeling from shock news brand will quit Europe
  • SsangYong GB owner in talks with Mitsubishi

The future of the team at the Colt Car Company is now uncertain as it’s believed the takeover would have saved a number of jobs.

The company is understood to have already made a number of redundancies and as it moves towards a parts-only business it is likely it will need to cut more.

In a statement, Mitsubishi said: ‘Although there has been dialogue with interested parties regarding aspects of the Mitsubishi Motors in the UK business, the decision has now been made not to progress these conversations further.

‘In the coming months Mitsubishi Motors in the UK will begin its transition into an aftersales business, backed by its majority shareholder Mitsubishi Corporation and Mitsubishi Motors Corporation, to ensure the 350,000 Mitsubishi drivers on UK roads have full support in terms of parts, accessories, maintenance, warranty, recalls and repairs well into the future.’

SsangYong invited Mitsubishi dealers who may be interested in joining the franchise to contact the company and said it would be holding an open day at its office on January 19 in Swindon.

Tyrrell said: ‘In spite of this disappointment, we continue to have a robust business for the future.

‘There is a clear overlap in product ranges, so Mitsubishi dealers would find the SsangYong range easy to sell.

‘We will be holding an open day at head offices and would like to encourage all Mitsubishi dealers to contact us to arrange to come.

‘We will be showing the full range of product and all of our management team will be in place to answer questions.’

First published: December 15, 10:07; Updated: 15:57

  • Register as a Car Dealer member and get more out of the website here
  • Car Dealer Mag issue 153 is out now – Read it here
  • Join our breaking news WhatsApp group – Click here to join now

Related Posts

Porsche Cayenne
News

Porsche Cayenne is named the most expensive vehicle to repair based on warranty claims

March 2, 2021
Ellesmere Port production of Vauxhall Astra
News

Business secretary pledges full commitment to keeping jobs at Ellesmere Port factory

March 2, 2021
Lookers CEO Mark Raban
News

No FCA fine for Lookers as city watchdog closes its investigation into the listed dealer group without penalty

March 2, 2021
Hyundai Ioniq 5
News

March 2 round-up: Ioniq 5 launch success; Delaying jabs works; Consumer borrowing shrinks

March 2, 2021
News

CarShop CEO: Customers have ‘never had it so good’ for price, choice and convenience

March 2, 2021
Motorline Worcester May 2019
News

Motorline does the Hyundai hat trick at manufacturer’s UK dealer awards

March 2, 2021

Want the latest news?

Sign up to Car Dealer's daily news email updates

Subscribe
How many car dealerships does each manufacturer have in the UK? Car Dealerships Locations List 2021 revealed
News

How many car dealerships does each manufacturer have in the UK? Car Dealerships Locations List 2021 revealed

February 24, 2021
Used Car Awards with Mike Brewer and James Baggott graphi
News

Who won what at the Used Car Awards 2020? Mike Brewer reveals our winning car dealers

February 11, 2021
Car Dealer issue 156 front cover and Used Car Awards
Online Magazine

Out now: Car Dealer issue 156 features our Used Car Awards, H.R. Owen CEO Ken Choo and lots more

February 23, 2021
Used car market stronger than ever as August sees sales up by nearly 50 per cent for Big Motoring World
News

Opinion: Here are 10 reasons why I think there’ll be a rapid recovery in car sales when lockdown ends

February 16, 2021
Trophy Cars forecourt
News

Investigation: Meet the hyper-specialist car dealers making their money from weird and wonderful motors

February 11, 2021
Become a Car Dealer Plus member and get more out of this website including free legal advice
News

Become a Car Dealer Plus member and get more out of this website including free legal advice

January 15, 2021
Car Dealer Top 100 – The list in full of the most profitable car dealers in the UK
Car Dealer Top 100

Car Dealer Top 100 – The list in full of the most profitable car dealers in the UK

February 10, 2021
Bitcoin ATM terminal
News

Will car dealers in the UK accept Bitcoin for payment? Dealers speak out after Tesla plans to accept cryptocurrency 

February 18, 2021
  • Latest
  • Used Cars
  • Live
  • Forum
  • Power 2020
  • Used Car Awards
  • CDX
  • Knowledge
  • Suppliers Guide
  • About Us
  • Latest Issue
  • Top 100
  • CD Plus
Call us: 020 8125 3880

© 2020 Blackball Media

No Result
View All Result
  • Car Dealer Plus
  • Latest
  • Used Cars
  • Live
  • Forum
  • Power 2020
  • Used Car Awards
  • CDX
  • Knowledge
  • Suppliers Guide
  • About Us
  • Latest Issue
  • Top 100

© 2020 Blackball Media

Log In
Register
Register
Server C